Answer:
Overapplied overhead= $7,575 overapplied
Explanation:
<u>First, we need to allocate overhead costs based on actual hours: </u>
<u></u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 31.25*4,780
Allocated MOH= $149,375
<u>Now, the over/under allocation:</u>
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 141,800 - 149,375
Overapplied overhead= $7,575 overapplied
A decrease in the price of complementary goods will shift the demand curve rightward.
A decrease in the price results in increase in demand for a good. Or a rightward move in the demand curve results an increase in both price and production of a complementary good in an economy.
When the price of a complementary good decreases, the quantity demand for that good increases, but the demand for the good that it is being complemented, decreases.
Complementary Goods refers a negative relationship with each other – which means that when price of the product 'A' increases , demand for product 'B' decreases. when price of product 'A' decreases , demand for product 'B' increases. Because in such a case more people now buy product 'A' because of the lower price. This relationship of complementary goods is known as ’negative cross-elasticity of demand.
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Answer:
1. Irrelevant costs
2. Capacity
3. Opportunity costs
4. Fixed Expense
5. Going concern
6. Coalition, Intuition, Escalation of Commitment, Risk Propensity, and Ethics
7. At full capacity
8. Differential Analysis
Answer:
a.The rental of any ski equipment you need.
b.The cost of a lift ticket.
d. The wages you forgo by going skiing.
Explanation:
The true cost in this case can also be called the opportunity cost of going skiing and it is defined as the total cost required in order to achieve the aim of going skiing.
The rental of any ski equipment you need, the cost of a lift ticket and the wages you forgo by going skiing are all included in the true cost of going skiing.
Answer:
Cost of equity = 10.7%
Explanation:
<em>We will work out the required rate of return using the the dividend valuation model. The model states that the value of a stock is the present value of the future divided discounted at the cost of equity.
</em>
The model is given below:
P = D× (1+g)/(r-g)
P- price of stock, D- dividend payable now, g- growth rate in dividend, r- cost of equity
So we substitute
130 = 5.50× (1+r)/(r-0.06)
cross multiplying
(r-0.06)× 130 = 5.50 × (1+r)
130 r- 7.8 = 5.50 + 5.50r
collecting like terms
130 r - 5.50r=5.50 + 7.8
124.5 r= 13.3
Divide both sides by 124.5
r =13.3 /124.5= 0.1068
r=0.1068 × 100= 10.7%
Cost of equity = 10.7%
